British startup Blippar recorded a loss of £4.96m in its last financial year, as it more than tripled its headcount in the expectation of future growth in the augmented reality (AR) technology market.

The company’s AR mobile apps, which overlay digital information and interactivity over real-world scenes and printed media, have been installed by more than 50 million people since they launched in 2011.

Blippar mainly makes its money from selling AR advertising to brands including Coca-Cola, Proctor & Gamble and Nestle, and saw its revenues grow 45% from £3.06m in its 2013 financial year to £4.46m in 2014.

However, the company’s net loss of £4.96m in 2014 compared to a net profit of £57.2k the previous year, as it expanded its headcount from 43 to 154 people. Blippar spent more on staff costs in 2014 - £4.72m - than it made in revenues.

Mobile AR is an area still in its infancy, however. “The company is concentrated on growing both the augmented reality market and its share of the market, and feels that this growth was positive,” explained Blippar’s directors in financial results filed with Companies House.

2014 also saw Blippar acquire one of its rivals, Layar. Its financial filing reveals that it paid £3.9m in cash for the Dutch company, which it valued for its “skilled, experienced staff base, a long tail of customers and an existing user base”.

The report explains that in Blippar’s fiscal 2013, which ended on 30 November 2014, the company raised £11m of funding. It also highlights another round of investment after the end of that financial year.

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“In March 2015, the company raised a further $25m (£15.9m) from the issue of ordinary shares. The directors expect to raise further funds through an equity raise in the next 12 months.”

Why the gap between the $45m of funding announced in March, and the $25m round referred to in the financial filing? “The investment is in tranches. We cannot disclose more about it,” says Blippar’s global marketing manager Assieh Khamsi.

Since the funding, Blippar has acquired a 4.47% stake in AR glasses maker Wave Optics.